1283843--3/11/2008--WPT_ENTERPRISES

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Risks Related to Our Business Our broadcasting agreement with GSN is a new business arrangement that will be a significant source of our future revenue, and there is no assurance GSN will be a viable business partner or that they will exercise rights to broadcast future seasons of the WPT, which would materially and adversely affect our results of operations. Our agreements with the Travel Channel and GSN grant rights to the parties that could impact the value of our WPT and Professional Poker Tour brands and place some limits on our growth. Our agreement with CryptoLogic is a relatively new business arrangement that we hope leads to a significant source of our future revenue, and there is no assurance that CryptoLogic will be a viable business partner, which would materially and adversely affect our results of operations. Our success depends on our current brand and any future brands we may develop, and if the value of our brands were to diminish, our business would be adversely affected. There is a risk that we may not be able to protect the format of our episodes, our current and future brands and our other proprietary rights. Early termination of our agreements with member casinos or violation by member casinos of the restrictive covenants contained in these agreements could negatively affect the size of telecast audiences and lead to declines in the performance of all of our other lines of business. Termination or impairment of our relationships with key licensing and strategic partners could adversely affect our revenues and results of operations. Our further expansion into foreign markets will subject us to additional business risks. The China initiative is unproven, its success will depend on multiple factors beyond our control, and there is no guarantee that we will be able to monetize our rights in the territory. We will face a variety of risks as we expand into new or complementary businesses in the future. The loss of the services of Steven Lipscomb or other key employees or on-air talent or our failure to attract key individuals would materially and adversely affect our business. Lakes Entertainment, Inc. remains the majority shareholder of the company and is able to effectively control our management and operations. Our Board of Directors' ability to issue undesignated preferred stock and the existence of anti-takeover provisions may depress the value of our common stock. Risks Related to Our Industry Our television programming may be unable to maintain a sufficient audience for a variety of reasons, many of which are beyond our control. Our ability to create and license our television programming profitably may be negatively affected by adverse trends that apply to the television production business generally. A decline in general economic conditions or the popularity of our brand of televised poker tournaments could adversely impact our business. The political or social climate regarding gaming and poker could negatively impact our ability to negotiate future telecast license arrangements and could negatively impact our chances of renewal. Government regulation of online gaming in foreign countries may restrict the activities or affect the financial results of our online gaming operations. Internet gaming is a relatively new industry and, therefore, we do not know if the market will continue to develop and our products and services to be offered through our online gaming website will be in demand. Our quarterly results may fluctuate, causing fluctuation of our stock price that may negatively affect the value of our common stock. The television entertainment market in which we operate is highly competitive and competitors with greater financial resources or marketplace presence may enter our markets to our detriment. The poker tournament component of ClubWPT operates in accordance with legal principles associated with sweepstakes, which requires a state by state review of each state's applicable laws and limits our ability to accept paid subscribers in every state or jurisdiction.

Full 10-K form ▸

1283843--3/11/2008--WPT_ENTERPRISES_INC